Author: Marketforces Africa

Tax Reform Bills ‘ll Ensure Sustainable Economic Growth – Oyedele Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr Taiwo Oyedele, says that the proposed tax reform bills are designed to address immediate fiscal challenges and lay a sustainable framework for economic growth and development of Nigeria. Oyedele said this in Abuja while presenting his committee’s findings on the proposed tax reforms bills to the Senate on Wednesday. The committee was constituted by the Federal Government to evolve measures of addressing the country’s economic challenges, including high poverty rates, low government revenue, and rising public debts. Oyedele said…

Liquidity Deficit Keeps Money Market Rates Elevated Money market rates remained elevated due to liquidity pressures in the financial system. Though the market has seen inflows this week, their effects remain insufficient to greatly impact the short-term benchmark interest rate movements. On Wednesday, interbank rates stayed in double digits high in the money market, though liquidity deficits eased slightly. A moderate inflow into the banking system reflated the liquidity position after N438.02 billion negative close on Tuesday. To fund operations, banks have found their ways again into the Central Bank of Nigeria’s (CBN) standing lending facility to access funds at…

Equities Investors Lose N208bn as Oil, Banking Stocks Plunge Equities investors on the Nigerian Exchange (NGX) lost more than N208 billion due to negative price movement in oil and banking stocks like Wema Bank, Aradel Holdings, and Haldane McCall. The benchmark index closed bearish as it slipped by 35 bps to close at 97,296.57 points. Today’s performance was driven by selloffs in ARADEL (-9.98%), NB (-5.26%), FIDELITYBK (-1.60%), and ETERNA (-9.88%). The sell pressure outweighed the positive sentiments in OANDO (+3.33%), ACCESSCORP (+1.77%), and CONOIL (+6.56%). JOHNHOLT lost -10.00% and SUNUASSUR popped higher 9.97%. Due to negative investors’ perceptions, the…

China, Nigeria Trade Value Hit N7.4trn as at June– VP Shettima Vice-President Kashim Shettima says Nigeria-China trade value has hit N7.38 trillion as at June. Shettima said this at the China-Africa Interbank Association Forum (CAIBA) 2024 in Abuja on Wednesday organised by First Bank Plc. The vice-president, represented by Dr Aliyu Modibbo, the Special Adviser to the President, General Duty, said that China remained the country’s number one trading partner. According to him, this underscores the importance of deepening our bilateral relationship with China, especially within the realm of financial and banking systems. ”Nigeria remains committed to its alliances with…

US Dollar Slides Against GBP, EUR Ahead of Data The US dollar fell against its major trading partners early Wednesday as markets face another busy day of data releases before the Thanksgiving holiday. The highlight of today’s session will be the release of the US October core PCE deflator, expected at 0.3% month on month, ING says in a note. Even though the market has largely moved on from the US inflation story, a sticky reading will add to doubts that the Fed needs to cut in December after all. ING analyst Chris Turner expects the dollar to largely hold…

The equities market is trading negative during early trading hours on the Nigerian Exchange (NGX).

Oil prices increased in the global commodities market on Wednesday after data showed that U.S inventories fell sharply.

Nigerian Banks Resilient Amid Pressure – CBN The Central Bank of Nigeria (CBN), says Nigeria’s Deposit Money Banks (DMBs) are satisfactorily resilient amid both external and internal pressures. Mr Yemi Cardoso, the Governor of the CBN, said this on Tuesday in Abuja while presenting a communiqué issued at the end of the 298th meeting of the apex bank’s Monetary Policy Committee (MPC). According to Cardoso, members of the MPC noted with satisfaction the continued resilience and stability of the banking system in spite of significant exogenous and endogenous headwinds. “Key financial soundness indicators such as the Capital Adequacy Ratio (CAR),…

Money Market Rates Diverge as Liquidity Deficit Widens Interbank rates mixed in the money market as the liquidity deficit extended further on Tuesday ahead of FAAC inflows expectations. Analysts noted that local deposit money banks are yet to come out of the woods of limited funding access as money market conditions remained tight. The deficit in the banking system expanded for the fifth consecutive day to open at N438.02 billion negative. On Tuesday, the Central Bank of Nigeria policy committee adjusted the benchmark interest rate by 25 basis points to 27.50% to combat inflation. The monetary authority, however, keeps other…

Food Prices Worsening Inflationary Pressure – CBN The Central Bank of Nigeria (CBN) says rising food prices is partly responsible for worsening headline inflation in the country. Mr Yemi Cardoso, the Governor of CBN, said this on Tuesday in Abuja while presenting the communiqué from the 298th meeting of the apex bank’s Monetary Policy Committee (MPC). According to Cardoso, the MPC meeting was held on the backdrop of renewed inflationary pressures, and as the headline, food and core measures rose year-on-year in October. He said that the Committee was particularly concerned that all three measures also inched up on a…